Richland Company purchased an asset in 2014 for $50,000 and sold it in 2017.The asset was 7-year recovery property.Richland's 2017 MACRS depreciation on the asset was $6,245.

Question

Quizplus · Accepted Answer

The asset was sold in 2017, so Richland Company would not claim depreciation for that year. Depreciation is only claimed for the period the asset is owned and used in the business.

Richland Company Purchased an Asset in 2014 for $50,000 and Sold